Info Edge’s education platform Shiksha reported a 13% decline in billings to Rs 45.1 crore in Q4 FY26, marking its first year-on-year drop in six quarters, the company said during its latest earnings call (medianama.com). The decline was attributed to reduced referral traffic from Google, which has shifted to an AI-driven search model that provides direct answers rather than directing users to external sites.
Hitesh Oberoi, managing director and CEO of Info Edge, explained that AI-powered changes in search behavior have been affecting Shiksha’s website traffic for several quarters. This trend culminated in the recent quarter with a direct impact on client deliveries and billings. The shift reflects a broader industry challenge as Google Search increasingly functions as an AI answer engine, reducing traffic to third-party websites.
The development highlights the growing impact of AI on digital advertising and referral-based business models, especially for education and publishing platforms. Shiksha’s experience aligns with concerns raised by other companies about the so-called “Google Zero” effect, where Google’s AI-driven search results limit external site visits. This shift could reshape how online platforms generate revenue from search traffic, prompting a reassessment of marketing and content strategies.
Info Edge will likely need to explore alternative traffic sources and monetization approaches to offset the decline caused by AI-driven search changes. Observers will watch how the company adapts in upcoming quarters, including any strategic initiatives announced in future earnings calls or investor presentations.